BenefitCost Analysis for Air Traffic Control Towers

1
Benefit/Cost AnalysisforAir Traffic Control
Towers

• Understanding the Background, Theory, Data
  Requirements
• Procedural Methodologies

2
Presentation Overview

• What is the B/C in context of ATCT?
• Why is a B/C analysis required?
• How is the B/C calculated?
• What Data is used for the B/C?
• How is the B/C used?
• Disclaimer The following represents the views
  of Quadrex and not necessarily those of the FAA
  or any other responsible agency and is solely
  responsible for the contents.

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Who needs a B/C Ratio?

• Fully funded ATCT Facilities (B/C ? 1.0)
• Cost-Share ATCT Facilities (B/C
• B/C represents FAA share of total cost
• Example B/C .9 means FAA will fund 90
• New ATCT Facilities (B/C 1.0 or greater)
• Establishment Criteria with deductions

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FAA Report APO 90-7Guidance for Methodology
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What Exactly is the B/C Ratio?

• FAA Report APO 90-7 sets rationale and
  methodology
• Benefits the Safety and Efficiency savings
  (lives property) of ATC Tower operation
• Cost - Annual expenses for Tower Ops
• Calculated on the FAA Data Defaults

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B/C Equation

• The Benefit Side of the B/C Equation
• Collisions Avoided
• Preventable Accidents
• Flight Efficiencies
• The Cost Side of the B/C Equation
• Annual ATC (Contractor) Cost
• Both figures calculated out for 15 years
• Discount rate 7 percent

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B/C VariablesAircraft Operations

• Operations Type
• Air Carrier/Air Taxi (Scheduled AT AC)
• General Aviation
• Military
• Historical/Forecast
• ATC Ops Counts / Surveys (new Starts)
• Terminal Area Forecast (TAF)

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B/C VariablesAircraft Mix

• Establishes Values for Operations at-risk
• Average Occupants (Passenger/Crew)
• Average A/C Hull Values
• Default Values
• Air Carrier - Official Airline Guide (OAG)
• GA - Based Aircraft Mix (5010/TAF)
• Natl Distribution (2.45 Occupants/557K)
• Site Specific Values
• GA Based Aircraft represent Itinerant Ops

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B/C VariablesCosts

• ATC Cost 300,000 500,000
• Regional Contractor Bid
• Based on Hours of Operation
• DOL Wage Determination
• Regional Cost of Living
• Staffing Levels/Extra Hours

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B/C Program Defaults Establishment Criteria

• Ops covered 92.5 of Total Ops
• Ops Mix Natl/Local Based Aircraft
• Establishment Coefficients
• Assumes No Prior ATC services
• Use Statistical Mean of Data
• ATC Costs 400K (average CTP facility)
• New starts get only Establishment B/C (FAA
  Policy to only allow for B/C ?1.0)

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B/C Program Defaults Discontinuance Criteria

• Ops covered 100 of Total Ops
• Discontinuance Coefficients
• Considers Safety Aspect of Losing ATC Services
• Use Statistical Upper Limits of Data (95
  confidence level)
• All Other Factors Same as Establishment

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Input Data RecommendationsAccuracy vs Expediency

• Based Aircraft Census
• Establishes mix of local traffic
• Aircraft Operations Level Ops Mix
• Itinerant vs Local
• Master Plan Inventory/Forecasts
• A/C Surveys Estimates
• Other empirical evidence
• Fuel Flowage
• IFR Traffic handled by ATC Approach/Departure
  Control
• Flight tracking (subscription)

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Estimating Aircraft Operationsat Non-Towered
Airports

• CORRELATION OF ACTIVITY BASED ON ON-SITE DATA
  AND OTHER LOCAL GA AIRPORTS WITH AIR TRAFFIC
  CONTROL TOWERS
• Input Data
• Aircraft Activity Survey
• Phase I (8 days 2 weekends)
• Phase II (21 days) June 16 - July 7
• Based Aircraft

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Estimating Aircraft Operationsat Non-Towered
Airports

• Traffic Counts Observations
• Similar to manual vehicle traffic counts
• On-site trained equipped observers
• Operations
• Take-offs (1 operation per)
• Landings (1 operation per)
• Touch Gos (2 operations per LTO cycle)
• Local vs Itinerant (N-number)
• Sky dive sorties
• Hourly totals peaking characteristics

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Survey Results
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DED B/C Calculations
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Questions?

• For more information
• Dave Byers
• Quadrex Associates, Inc.
• [phone]